Speaking to Bvom.com, Commonwealth Bank of Australia commodities strategist David Thurtell said, “The higher prices could hurt Asia’s economies just as many have started to recover from the economic fallout of the Iraq war and the outbreaks of SARS and bird flu.”

“As long as prices remain in the US$30s, Asian economies will suffer,” added Thurtell.

This view is shared by Merrill Lynch regional energy analyst Adrian Loh who said, “The countries that import a lot of oil like India, China, Japan, Korea and Taiwan, will be most negatively impacted.”

“Only the few net exporters of gas and oil in the region, Malaysia, Indonesia and Brunei, stand to gain from oil's current price tag. It will add to the countries’ coffers,” added Loh.

The International Energy Agency had earlier warned an increase of US$10 per barrel over a period of year could cut of 0.8% off of Asia’s total economic growth. The result of this would mean higher unemployment and inflation levels in the region.